Slide 1: For personal use only
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Slide 2: Disclaimer
Disclaimer For personal use only Silver Chef Limited has not considered the financial position or needs of the recipient in providing this presentation. Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial or legal advi
Slide 3: 1. Snapshot
1. Snapshot For personal use only Performance • Strong growth in EPS and dividend returns on the back of record profit highlights • Excellent growth in GoGetta rental asset base • Significant increase in group rental asset base including lease receivables • Strong performance from Canadian business
Slide 4: 2. Company overview
2. Company overview For personal use only ASX Trading Information Funding Metrics Share Price 21 Aug 15 $8.16 Gearing 62.7% 52-w Trading Range $5.64 - $9.43 Net debt to net rental assets 64.2% Issued Shares 30.9m ICR 3.86x Market Capitalisation $252.1m Debt $141.1m Key performance measures Lost time
Slide 5: 3. Product offering and key features
3. Product offering and key features For personal use only RTB Retention LTR Advantage Length of Contract 12 Months 12 Months 36 Months 48 Months Operating / Finance Lease Operating Operating Finance Finance 20% Discount off RTB 30% Discount off RTB Typical Rental Rate 5-6% per month 3.5-4.0% rate r
Slide 6: 4. Organisation chart
4. Organisation chart For personal use only Executive Chairman ALLAN ENGLISH Chief Financial Executive General Executive General Executive General National Sales & Chief People Officer Officer Manager - North Manager - South Manager - Canada Marketing Manager LESLEY LODGE DOUG MCALPINE DAMIEN GUIVAR
Slide 7: 4.1 Silver Chef leadership team
4.1 Silver Chef leadership team For personal use only Allan English Executive Chairman The founder of Silver Chef Limited, Allan has had extensive experience in the hospitality and service and rental sectors. Allan was the Managing Director from 1986 to June 2010 after which he was appointed non-exe
Slide 8: 4.1 Silver Chef leadership team (cont'd)
4.1 Silver Chef leadership team (cont’d) For personal use only Sylvia Po-Ching Executive General Manager, Southern Region The longest serving member of Silver Chef Group's leadership team, Sylvia has been with the business since 1999. Sylvia has previously taken the principal responsibilities for op
Slide 9: 5. Strong growth in acquisitions and group assets
5. Strong growth in acquisitions and group assets For personal use only Book value of rental assets and lease receivables Group asset acquisitions 9
Slide 10: 6. Excellent revenue growth from asset base
6. Excellent revenue growth from asset base For personal use only Revenue up 21% to $171.0 million (FY14: $141.3 million). Hospitality revenue up 16% to $110.1 million Revenue by segment (FY14: $94.6 million) GoGetta revenue up 31% to $57.4 million (FY14: $43.9 million) GoGetta proportion of
Slide 11: 7. GoGetta – Transport and construction focus
7. GoGetta – Transport and construction focus For personal use only Increased focus on transport sector - light commercial vehicles, trucks/trailers and small to medium sized construction equipment Currently only a small share of a very deep market with growing appetite for flexible finance opti
Slide 12: 8. Hospitality Australia – Growth in a maturing market
8. Hospitality Australia – Growth in a maturing For personal use only market Segment performing in line with expectations, although increasingly competitive environment Enhancing annuity stream income through converting customers to traditional long term finance leases Growth opportunities bei
Slide 13: 9. Hospitality Canada – Solid platform for growth
9. Hospitality Canada – Solid platform for growth For personal use only Cash profit break even position during the period Presence now in Toronto, expanding national reach Strong support for Silver Chef’s product and business model Suppliers are proactively supporting our entry into that mar
Slide 14: 10. Hospitality New Zealand – Strong economic fundamentals
10. Hospitality New Zealand – Strong For personal use only economic fundamentals Auckland Head office in Auckland with dedicated local customer support team Strong growth in North Island with increasing acquisition volumes in South Island Growing sales team Strong opportunities in coffee cha
Slide 15: 11. Capital management
11. Capital management For personal use only 82% of the year’s asset acquisitions funded from internally generated cashflows $32M of debt drawn under the CBA bilateral facility during the year and $9M of new equity raised in March 2015 Senior debt arrangements successfully restructured post ye
Slide 16: 12. Senior debt syndication outcomes
12. Senior debt syndication outcomes For personal use only Transitions SIV from a bilateral business banking Objective Outcome facility to the syndicated loan market Capital • $300 million syndicated facility provides head room of approximately $150 requirement million, expected to cover debt capi
Slide 17: 13. Credit and Residual Asset Risk
13. Credit and Residual Asset Risk For personal use only Additional conservative provisioning in 1H15 as a result of review of collection processes Long term provisioning for doubtful debts and impairment normalising in range of 2-3% per annum Client base remains highly diversified - largest c
Slide 18: 14. Earnings and returns improving
14. Earnings and returns improving For personal use only Historical Returns Continued improvement to earnings and return metrics driven largely by better leverage from group overheads 18
Slide 19: 15. Profit & Loss
15. Profit & Loss For personal use only $ millions FY11 FY12 FY13 FY14 FY15 Revenue 62.9 84.2 114.4 141.3 171.0 No deterioration in loss rate as % of revenue or % of assets Expenses from ordinary activities (18.9) (25.6) (33.8) (42.6) (57.9) Loss on sale of plant and equipment (2.4) (4.5) (4.5) (5.4
Slide 20: 16. Financial Position
16. Financial Position For personal use only $ millions FY11 FY12 FY13 FY14 FY15 Assets Growth in debtors linked to Cash 1.5 0.7 1.3 1.5 1.6 revenue growth, but better Trade receivables and other 3.4 2.6 3.9 5.6 8.5 debtor management practices implemented Lease receivables - - - 11.5 30.6 Other curr
Slide 21: 17. Cash Flow
17. Cash Flow For personal use only $ millions FY11 FY12 FY13 FY14 FY15 Strong operating cash result Net cash from operating activities 43.4 56.4 75.3 89.4 103.3 Payments for plant and equipment (67.2) (94.4) (126.1) (139.1) (184.0) Proceeds from sale of plant and equipment 14.8 19.1 24.2 35.1 82% o
Slide 22: 18. Corporate and social responsibility
18. Corporate and social responsibility For personal use only • Silver Chef is committed to conducting its activities in ways that produce social, environmental and economic benefits for communities in Australia and around the world • Our largest shareholder is a non-profit foundation that uses its
Slide 23: 19. Outlook
19. Outlook For personal use only 4.3% growth rate across Australian restaurant industry over the past 5 years creating ongoing funding opportunities Strong ongoing demand for coffee and dining out will create ongoing funding opportunities even though the market is maturing in Australia Canadi